Fiscal Note
The proposed resolution amends the Economic Development Division's (EDD) 2025 Adopted Capital Budget to add $500,000 in TIF increment to the TID 44 capital program (program #99007), $750,000 in TIF increment to the TID 46 capital program (program #99009), and $850,000 in TIF increment to the TID 51 capital program (program #99011). The funds added to each TID capital program will be used for small business assistance programs. The proposed resolution further authorizes the transfer of $1,170,000 in TIF increment from the TID 51 capital program to the Land Banking capital program (program #12640) to be used for the demolition of land banked properties at 1810 S Park St, 1901 S Park St, 814 North Ave, and 826 North Ave. Due to TID accounting rules, these funds should be transferred to the capital fund for purchase and maintenance of property within the TID.
Title
Amending the 2025 Economic Development Division Capital Budget for TID #44 by $500,000 to fund small business development programs, amending the 2025 Economic Development Division Capital Budget for TID #46 by $750,000 to fund small business development programs, amending the 2025 Economic Development Division Capital Budget for TID #51 by $850,000 to fund small business development programs, and amending the 2025 Economic Development Division Capital Budget to transfer $1,170,000 from the TID 51 capital program (program #99011) to the Land Banking program (program #12640) to fund demolitions of Land Banked properties at 1810 S. Park Street, 1901 S. Park Street, 814 North Avenue, and 826 North Avenue (District 3, District 9, District 11, District 14, District 15, District 19).
Body
WHEREAS, the City of Madison funds several small business development programs through several Tax Increment Finance Districts, including the Façade Grant Program, Building Improvement Grant Program, Small Cap TIF Program, and Commercial Ownership Assistance program; and,
WHEREAS, the City of Madison desires to expand small business development programs within Tax Increment Finance Districts when there is capacity to do so; and,
WHEREAS, the City of Madison will be amending the Project Plan for TID #44 in 2025; and,
WHEREAS, through the course of preparing a TID #44 Project Plan amendment, Economic Development Division staff have identified that TID #44 has the capacity to support $500,000 of expenditures for small business development programs; and,
WHEREAS, the 2025 Economic Development Division Capital Budget does not currently include any funding for small business development programs within TID #44; and,
WHEREAS, the City of Madison will be amending the Project Plan for TID #46 in 2025; and,
WHEREAS, through the course of preparing a TID #46 Project Plan amendment, Economic Development Division staff have identified that TID #46 has the capacity to support $750,000 of expenditures for small business development programs; and,
WHEREAS, the 2025 Economic Development Division Capital Budget does not currently include any funding for small business development programs within TID #46; and
WHEREAS, the 2025 Economic Development Division Capital Budget for TID #51 includes $3 million for land banking related work and small business development programs; and,
WHEREAS, $3,780,000 was transferred from the TID 51 capital program to the Land Banking program for the purchase of 1814 S. Park Street via legislative file 86853 in order to comply with TID accounting rules; and,
WHEREAS, an estimated $1,170,000 is needed to demolish previously purchased land banked properties (1810 and 1901 S. Park Street; and, 814 and 826 North Avenue); and,
WHEREAS, due to TID accounting rules, the funds needed for the demolition of said properties need to be transferred to the Land Banking capital program (program #12640); and,
WHEREAS, the aforementioned transfers to the Land Banking capital program and planned small business development programs within TID #51 will likely exceed the 2025 budgeted amount plus carryforward from previous years; and,
WHEREAS, the TID #51 Project Plan already has the capacity to support the purchase, demolitions, and small business development programs; and,
WHEREAS, Economic Development Division staff recommend increasing the 2025 Economic Development Division Capital Budget for TID #51 by $850,000 to accomplish all of the aforementioned work.
NOW, THEREFORE, BE IT RESOLVED, that the 2025 Economic Development Division Capital Budget for TID #44 is amended by adding $500,000 for the purpose of funding small business development programs; and,
BE IT FURTHER RESOLVED that the 2025 Economic Development Division Capital Budget for TID #46 is amended by adding $750,000 for the purpose of funding small business development programs; and,
BE IT FURTHER RESOLVED that the 2025 Economic Development Division Capital Budget is amended to transfer $1,170,000 from the TID 51 capital program to the Land Banking capital program to fund demolitions of Land Banked properties at 1810 S. Park Street, 1901 S. Park Street, 814 North Avenue, and 826 North Avenue; and,
BE IT FURTHER RESOLVED that the 2025 Economic Development Division Capital Budget for TID #51 is amended by adding $850,000 for the purpose of allocating funding to support small business development programs; and,
BE IT FINALLY RESOLVED that the expenditure of small business development funds in TID #44 and TID #46 is subject to the Tax Increment Finance Joint Review Board approval of these project plan amendments.